Ben Lee, Esq. 
Real Estate Broker / Licensed Attorney
ben@benleeproperties.com
Coldwell Banker
Beverly Hills North Office
301 N. Canon Drive, Suite E
Beverly Hills, CA 90210
(310) 858-5489 direct
(310) 704-6580 cell
Ben Lee has sold properties throughout the Westside of Los Angeles, including Cheviot Hills, Pacific Palisades, Santa Monica, Brentwood, Beverlywood, Westwood and Beverly Hills. Ben is a Cheviot Hills resident. Learn more about Ben here.
| A Brief Note on Leasing and Foreclosure |
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In this market, one interesting problem for many tenants is that their recently signed lease may just not be worth the paper it is printed on. What does that mean? Well, homeowners in foreclosure are typically desperate for cash. They may have recently lost a job or just simply overextended themselves in their purchase or their refinance during better times. Their loan may have adjusted to a higher rate, thus increasing their payments to unmanageable levels. So, if in foreclosure, one quick way to raise a few bucks is to lease your house. What does a landlord typically ask for? Usually, the first month's rent + 2 months security deposit. BUT THIS IS WRONG! It is fraud to enter into a contract for something that you know you cannot deliver. If you promise a year lease, and know you are in foreclosure, then you cannot deliver what you have promised. BEWARE! Many agents representing potential tenants are not doing their homework and are not checking the title history for properties for lease. A Notice of Default may have been sent to the owner notifying him/her of impending foreclosure, and this would be recorded on the title history, notifying the world (including potential tenants). There is thus a ticking clock on the landlord’s ownership. Of course, all of this is public information, but information that the landlord probably opted not to share with the prospective tenant and their agent. And, they probably cashed the hapless tenant's deposit check already! So, if you’re in the market for a lease, make sure your agent does his / her homework and protects your interests. It would not be fun to be evicted just a few short months after signing your lease and moving in. Also, not a great use of your time to sue a cash strapped foreclosed owner for your security deposit! |
